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Spanish Property » Spain / Spanish Real Estate

UNDERSTANDING THE SPANISH 'BUY PROPERTY FOR RESIDENCY' SCHEME

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By Spanish Property / 2012-12-29 01:50:44

It is now even easier for foreign Nationals to gain the right of residency in certain European countries - providing you buy yourself a home!

The Spanish government, for example, is now the most recent European country to allow foreigners to take up residency. EU nationals already have the freedom to live in Spain, and from now on so do nationals from outside of the European Economic Community on the condition that they invest at least € 160,000 on property in Spain.

This latest offer is just one of many of the Spanish government's attempts to inject more fuel into the property market in Spain. Other recent schemes have included temporary IVA (VAT) cuts to 4% on new home purchases before the end of 2012.

There is no mistaking the fact that Spain's housing market is not as buoyant as it once was – according to the National Statistics Institute prices of property in Spain have fallen over 15 per cent in the year to the end of the third quarter, 2012, the 18th consecutive quarter of price falls. Supply and demand for Spanish property are not in sync and there are currently over 1.2 million unsold properties in the country – more than 200,000 repossessed properties and around one million unsold, newly constructed homes. And with banks tightening up on mortgages and credit in general, the number of property buyers has significantly decreased since 2008 when the market began to slow down.

The Spanish residency opportunity is currently the best offered by an EU country. In order to obtain residency in Ireland and Portugal, for example, a foreign national must invest at least € 400,000 and € 500,000 respectively on property in these countries.

But it isn't all gloom and doom for the Spanish property market. Analysts predict that although times are tough, the market could begin to rebound in the next few years in certain parts of Spain. The Murcia region, for example, is predicted to be one hotspot with the recent announcement of the new Paramount Theme Park. And with prices as low as they currently are, the time is right for the speculative investor to seriously consider purchasing property in Spain.

Related Articles
The Leader Newspaper, 13 July 2012, THE MURCIA PROPERTY INVESTMENT OPPORTUNITY – TOO GOOD TO MISS?



Tags: Propertyportal, Spanishproperty




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Comments

Chris Hallamore 11-01-2013 / 18:12

Dear Sir

as far as I am aware this proposal has not been ratified by the Spanish Government. Apparently this proposal has to be agreed to by EU with reference to the Schengen Agreement

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